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What's BOT?
BOT (Build-Operate-Transfer)
1, infrastructure concessions
BOT is a Build-Operate-Transfer English abbreviation, often literally translated as
"build - operate - transfer." This straightforward translation, but
does not reflect the essence of BOT. BOT is essentially investment in infrastructure,
construction and operation of a way to reach an agreement between the government
and the private sector as the precondition, the license issued by the government to the
private sector, allowing it to raise funds in a given period of an infrastructure and
construction management and operation of the facility and their corresponding
products and services. The Government of the institutions of public goods or services
may be limited quantity and price, but the guarantee of private capital has the
opportunity to profit. The whole process of risk sharing by the government and the
private sector. When the license expires, the private sector, according to the agreed
transfer of the facilities to government departments, the Government designated by
the department transferred the operation and management. Therefore, BOT free
translation for the word "infrastructure concession" is more
BOT above a narrow concept. BOT experienced several hundred years of
development, in order to adapt to different conditions, has led to many variants, such
as BOOT (Build-Own-Operate-Transfer), BOO (Build-Own-Operate), BLT
(Build-Lease-Operate) and TOT (Transfer-Operate-Transfer) and so on. BOT concept
includes a broad variety of these derivatives included. Commonly referred to as BOT
BOT concept should be broad. "Build - operate - transfer" could
not summarized the development of BOT model.
2, BOT History

In recent years, BOT and construction of this investment approach by some
developing countries to be used for its infrastructure and have achieved some success
has led to a wide range of popular worldwide, as a new investment by way of
publicity, but BOT far from being a new thing, it has been there since at least 300
17th Century Society of the United Kingdom responsible for managing marine
pilotage services, including construction and operation of the lighthouse, and the
construction of the lighthouse and the boats have the privilege of charge. But
according to Ronald Coase (R. Coase) survey, from 1610 to 1675, 65 years, the Pilots
Association has not completed even a lighthouse. The lighthouse built in the same
period in private at least 10. This private investment in the construction of the
lighthouse is exactly the same way as the so-called BOT. Namely: Private First of all,
to the Government to allow the construction and lighthouses are operated applications
for the must include many shipowners attest by signing will build lighthouses on them
You Li and expressed willingness to pay through tolls; to apply for government
approval after the private sector to the Government the construction of the lighthouse
to occupy leased land a beacon in the management of the concession period to collect
tolls passing ships; privileges after the expiry of the lighthouse back from the
government to Pilots Association and the management and continue to charge. To
1820, the lighthouse in all 46, there are 34 private investment in construction. BOT
model can be seen in the investment efficiency is much higher than the executive
With many other innovations have a common destiny, BOT after its birth experienced
a quiet period. And during this quiet period in terms of the BOT is so long so that
people almost forget that it's early performance. Until the 80s of this
century, due to the economic development needs to BOT Pengdao economic arena,
many people take it as a novelty.

3, BOT features

Contemporary capitalist market economy based on the introduction of a strong state
intervention. Economics in theory while affirming the "visible
hand" of the role of the market economy gradually evolved into a
combination of market and planned mixed economy. BOT is precisely with such
market mechanisms and government intervention, the combination of the
characteristics of mixed economy.
On the one hand, BOT to maintain the market mechanism to function. Most of the
economic behavior of BOT projects are in the market, and the Government to tender
to determine the project's approach is in itself contains the competition. As
a reliable market is the main private sector actors BOT model, the concession period,
construction on the project with complete property rights. This commitment to the
private sector BOT project in the implementation of BOT projects fully comply with
the behavior of the process of economic man hypothesis.
On the other hand, BOT for government intervention to provide an effective way,
which is reached by the private sector the BOT agreement. Although the BOT
agreement, the project company responsible for the implementation of all, the
Government has all along has control of the project. In the project, tender, three stages
of the negotiations, the Government will play a decisive role. Of the compliance
period, the Government also has the supervision and inspection powers of the
formulation of project operations are also subject to government price constraints, the
Government can also be general constraints BOT BOT France to conduct the project

】 【Reproduced in LXBLOG

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